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A small name change pushed India’s coolest beer brand, Bira 91, into a major crisis.
What started as a simple legal update soon turned into a business disaster. (Photo Credit: X)
They say small mistakes can have big consequences, and Bira 91’s story proves just that. Once known as India’s coolest and fastest-growing beer brand, the company’s downfall began not because of bad sales or competition, but due to something as simple as a name change. A tiny paperwork error spiraled into a full-blown crisis that halted sales, triggered bans, and even forced the founder out of his own company.
Investor D Muthukrishnan recently shared details about how the company’s sudden downfall took place. In his social media post, he explained how one small legal change snowballed into one of the biggest business setbacks in India’s startup world.
How One Change Started It All
According to Muthukrishnan, Bira 91, owned by B9 Beverages Private Limited, was preparing for an IPO in late 2023. To meet listing requirements, the company decided to drop the word “Private” and rename itself as B9 Beverages Limited.
The name was officially changed with the Registrar of Companies in January 2024. However, the company’s packaging, licenses and product labels were still printed under the old name.
As the new stock was yet to be distributed, beer bottles with “B9 Beverages Private Limited” continued to be sold. This tiny mismatch created an unexpected problem.
Bira 91 was one of the successful start-up stories of last decade. It is a popular craft beer brand. They were growing so well. Reality is strange than what you can imagine. A procedural goof up has lead to whole company being collapsing and the founder now being forced even to…— D.Muthukrishnan (@dmuthuk) October 10, 2025
Sales Stopped Overnight
“All hell then broke loose,” Muthukrishnan wrote on X. The moment authorities in different states noticed the name change, they treated the renamed company as a completely new entity.
Overnight, Bira 91 was banned from sale across multiple states until it got fresh approvals, label clearances and product registrations. This led to an immediate halt in distribution.
Large amounts of beer sat unsold in warehouses, and retailers pulled products from shelves. Sales volumes dropped by nearly 25 per cent year-on-year between July and September last year.
From Growth to Downfall
As per Business Today, Bira 91’s revenues fell from Rs 824 crore in FY2023 to Rs 638 crore in FY2024, while net losses surged to Rs 748 crore, its worst financial year so far. Although the company gradually secured renewed licenses and resumed production in early 2025, its brand momentum was lost, and the much-awaited IPO had to be put on hold indefinitely.
Further in his post, Muthukrishnan added that India’s complex compliance system played a major role in the collapse. He quoted former Diageo India CEO Hina Nagarajan, who once said she kept the name United Spirits unchanged to avoid such disruptions.
“Though what happened to Bira is extremely unfair, you have to accept the reality of India,” Muthukrishnan wrote. “Procedures and proper documentation are extremely important. The rules are so complex that expert advice is essential,” he added.
A team of writers at Business.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
A team of writers at Business.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
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Delhi, India, India
October 11, 2025, 12:45 IST
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